Political opinion by Alison Griffiths MP: Standing up for full banking services

Last week, I took part in a well-attended cross-party debate in Parliament on bank closures and banking hubs. I used the opportunity to highlight the growing impact of vanishing banking services across our part of West Sussex.

The upcoming closure of Santander in Bognor Regis and Rustington, and Halifax in Littlehampton, adds to a nationwide crisis: over 6,300 branches have shut since 2015. A staggering 64% drop. When Santander closes its Rustington branch on 5th August, the high street will have no full-service bank at all.

I made clear in the debate that while Post Offices are doing their best to fill the gap, they simply cannot meet the demand for more complex banking tasks or large cash deposits. Queues are growing, and frustration is mounting. Although I submitted a formal appeal to LINK, supported by residents who responded to my survey, Rustington was denied a banking hub owing to its proximity to Littlehampton. That decision is deeply disappointing.

Banking hubs, as they currently operate, are a limited solution. They typically offer basic services such as cash withdrawals, deposits, and simple account support. However, they fall short of what many customers need. Services like mortgage advice, business banking, and in-depth financial consultations are not available. These hubs operate with fewer staff, reducing the opportunity for meaningful face-to-face support.

Only 108 of the 224 planned hubs have opened so far, and the rollout can take up to a year. The Financial Conduct Authority’s criteria for assessing need are too narrow, focusing solely on cash access. But what about those who rely on in-person support due to language barriers? Or those who can’t or won’t use digital banking because of accessibility issues, or fear of cybercrime? Forcing reliance on digital services by vulnerable or elderly residents increases the potential for exploitation by ruthless cyber-criminals.

We need to look again. I will continue to press Ministers and regulators to deliver better. As one resident said to me, “Banks are licensed by the Government. Those licences should come with a duty to maintain local branches.”

The Financial Services and Markets Act 2023 was a start. However, we need stronger protections to ensure that banking innovation doesn’t come at the expense of those who still depend on traditional services. I will continue to stand up for full-service banking in Bognor Regis, Littlehampton, and our villages.

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